Name of the Project
Siviour graphite project.

Location
The project is located on South Australia’s Eyre Peninsula.

Project Owner/s
Renascor Resources.       

Project Description              
A prefeasibility study (PFS) has confirmed the project’s potential to achieve significant returns through the vertically integrated development of a mine and flake graphite concentrate operation, as well as downstream production of spherical graphite.

The spherical PFS builds upon an early scoping-level study, which concluded that there was potential for significant value uplift from a spherical graphite operation.

The PFS demonstrates that strong financial returns can be expected from a large-scale development by adopting conventional techniques and procedures.

Production of spherical graphite is estimated  29 085 t/y over a 30-year mine life.

This spherical PFS adopts the technical parameters and assumptions included in the concentrate PFS and assumes that an estimated 61 500 t/y of fine flake (<150 μm) graphite concentrates will be procured from the Siviour graphite deposit.

The proposed spherical graphite plant incorporates graphite concentrate offloading and dry storage, micronisation, spheronisation, caustic roast thermal purification and purified spherical graphite drying and bagging.

Subsequent studies will focus on the optimisation of project economics through alternative milling and purification technologies, and on providing multiple spherical graphite products at different size specifications. Further studies will also consider market entry strategies, including scaling up through pilot- or small-scale development and partnering with downstream participants.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The spherical operation has an after-tax net present value, at a 10% discount rate, of A$487-million. Payback is estimated at 2.5 years.

The integrated operation has an after-tax net present value, at a 10% discount rate, of A$889-million. Payback is estimated at four years

The integrated operation has an internal rate of return 53%.

Capital Expenditure
Total capital expenditure is estimated at A$221.5-million.

Planned Start /End Date
Pending financing, construction of the Siviour project could start as early as the fourth quarter of this year, with first production likely to follow by 2020.

Latest Developments
Renascor Resources has said that the availability of financing will ultimately determine the size of its Siviour graphite project, in South Australia.

“Graphite projects are historically very difficult to finance; it is an industrial mineral, offtake is difficult and it’s very hard to finance these kinds of projects,” Renascor MD David Christensen said at this year’s Battery Minerals conference.

He noted that while most small scale projects were still faced with a fixed infrastructure cost, which could impact on operating costs, the Siviour project was located in an area of established infrastructure.

“We believe we can start on a small scale and still have a very competitive operating cost of $600/t. Or, alternatively, we can go large and push operating costs to among the lowest in the world.”

Renascor is completing a definitive feasibility study for the Siviour project, which is due for completion in the second quarter of this year, and is working with its debt advisers on funding options, which Christensen has said will instruct the company on the most likely avenue of development.

Key Contracts and Suppliers
Wave International (study manager and supervising engineer – PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Renascor Resources, tel +61 8 8363 6989, fax +61 8 8363 4989 or email info@renascor.com.au.